Strictly Private & Confidential
Opportunity Day
Gunkul Engineering PCL.
Aug 31, 2011
Strictly Private & Confidential
Opportunity Day
Gunkul Engineering PCL.
Aug 31, 2011
Strictly Private & Confidential
2
Contents1. Gunkul Business
Conventional BusinessRenewable Energy BusinessEPC Opportunity(Up to date & progress)
2. Gunkul Performance for Period 30/06/2011
3. 2011 Gunkul Backlog
4. Q&A
Strictly Private & Confidential
3
1. Gunkul Business&
Group of Company
Strictly Private & Confidential
4
Vision: "To become Thailand's number one manufacturer and provider of equipment for electrical systems and renewable energy systems that meet and satisfy customers' need and concurrently maximize stakeholders' return"
GUNKUL Office at Dusit, Bangkok (since 1982)
Power Producer BusinessBecome Manufacturer (since 1992)
Entering to Renewable Energy Business
(since 2009)Established in 1982 as an Electrical Equipment Trader (30th Anniversary last month))
To become the leader in supplying and manufacturing electrical products, GKA and GKP as Electrical Product Manufacturer were established in year 1992 and 1998.
With opportunity to expand to Renewable Energy Business, GPG was setup in 2009.
In 2010, GPG owned the PPAs of Solar Power Plant with 30.9 MW capacity which the first 3.0 MW Solar Power Plant has been COD since 4th Jan 2011. Another 4.4 MW Solar Power Plant is under construction expected to COD with in August 2011. The remaining 23.5 MW capacity will be finished construction and ready to COD within 2012.
Become the listed company since Sep 19, 2011. (IPO Price = 5.4 baht, Price as of Aug 4th, 2011 = 18.8 baht)
In 2010, GPS which owned 26 MW PPA of Solar Power Plant was acquired by GUNKUL. These solar power plants are expected to COD within Sep 2011.
Strictly Private & Confidential
5
Electricity plants:Wind turbine componentsSolar panel components
A
Distribution lines:Cables and accessoriesCapacitorsFuse and switchesGroundingHardware and connectorsInsulatorsLightning protectionLive part coversMaintenance equipmentMetersPreformedTools and instrumentsTransformers
D
Transmission lines:Cable and accessoriesFuse and switchesHardware and connectorsInsulatorsLightning protectionMaintenance equipmentTools and instruments
B
Substation:Battery and chargersCapacitorsGroundingMaintenance equipmentMetersTools and instrumentsTransformers
C
Low voltage lines:CapacitorsExplosion proof productsFuses and switchesGroundingHardware and connectorsInsulatorsLightning protectionMetersPreformedStreet lighting and controlTelephone hardware
E
From the upstream to the downstream, GUNKUL offers full range of products and services (as many as 5,000 electricity items). Around 300 products are produced in house.
High Light Products
Strictly Private & Confidential
6
Why Renewable Energy?
Global Warning IssueInsufficient Oil and Gas to Supply
According to the research, oil will be out within next 46 years and natural gas will be out within 60years, given that consumption rate is the same as consumption rate.Global warming is caused by increased concentrations of greenhouse gases in the atmosphere,resulting from human activities such as deforestation and burning of fossil fuels. The more peopleconsume the energy, the more serious of issue become.Those are the reason why WE NEED RENEWABLE ENERGY!!!!
Strictly Private & Confidential
7
G.K. Assembly
(Manufacturer)
G.K. Power Product
(Manufacturer)
K.N.P. Supply
(Distributor)
99.99%
Gunkul Power Gen
(Power Producer)
99.99%
99.99%
99.99%
Gunkul Engineering Plc.
GUNKUL is a marketing and trading arm of the group. GUNKUL sources products from manufacturers both outside and inside the group and then caters to its customers which consist of foreign, private (general customers, contractors, factories and end-users) and government entities.
Similar to GUNKUL, KNP is a marketing and trading arm. However, KNP will mainly focus at government agencies such as the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA).
GKA and GKP are manufacturing arms and supply their products to GUNKUL and KNP.
--
nde
KNPGKA
GKP
Manufacturers
ElectricalManufacturers
GUNKUL
Government
Private
Foreign
Distributors Customers
Subsidiaries
GPG
Power Producer
GPS
G.Power Sources
(Power Producer)
98.98%
Strictly Private & Confidential
8
Conventional Business
Strictly Private & Confidential
9
Manufacturing & Trading
Strictly Private & Confidential
10
Strong Business Platform
CentralBidding
Individual Purchasing
OrderCharacteristics
Barrier to entry GUNKUL
High qualification requirements i.e. requiring the product to meet 3 industrial standards
Continuously order for replacement & expansion
Product meeting industrial standard (TISI)
Expensive type test for each product
Difficulty to be a vendor list
Limitation for 1st order, only 20% of total order for some product (that could have a significant impact to the electric system)
Approval for vender list
Offers approx. 300 owned product items to this segment,
facilities have put the company at advantage
Expertise in sourcing quality products to fulfill remaining categories
Wholesalers and contractors might come in a form of project based needs, therefore, they may require diverse kinds of products with certain quality at a time
For those contractors awarded turnkey projects from government, they will also
quality specifications. Accordingly, suppliers such as GUNKUL will face the same circumstances as selling to government segment
Stay in good position and easy to access this segment due to:
GUNKUL is in an approved vender list from state enterprise
It offers more than 5,000 product items to this segment
Myanmar Electric Power Enterprise (MEPE), Yangon Electricity Supply Board (YESB), Electricite Du
Laos (EL)
Might come in a form of project based needs, therefore, this segment may require diverse kinds of products at a time
Accessible and knowledgeable this type of customers
Funding capability
Long established relationship and network
Fully understand characteristic of customers
Well recognized and supported from financial institutional
1. G
over
nmen
t2.
Priv
ate
3. F
orei
gn
Strictly Private & Confidential
11
25 Years Plan Market Size of MyanmarPower Systems Potential Market
PeriodGeneration
(1)Transmission
(2)Distribution
(3)GrandTotal
Total(2)+(3)
Market share10%-12%
Capacity Budget Length Budget Budget Budget Million $/Per five Year
Million $/ Per YearYear MW Million $ Miles Million $ Million $ Million $
2007-2011 848 978.00 1,926 582.15 309.5 1,869.65 891.65
2012-2016 5,100 6,120.00 1,576 326.71 1,296 7,742.71 1,622.7135 40 US.M.
Per Year
2017-2021 3,342 4,010.00 1,928 606.65 1,203.1 5,819.75 1,809.75
2022-2026 5,650 6,780.00 675 255.94 1,295.8 8,331.74 1,551.74
2027-2031 6,370 7,644.00 140 27.96 2,229.5 9,901.46 2,257.46
Total 21,310 25,532.00 6,245 1,799.41 6,333.9 33,665.31 8,133.31
Strictly Private & Confidential
12
Power Systems 25 Years Plan Map
Strictly Private & Confidential
13
Equipment Business
Under its conventional business, products are mainly classified into 5 categories according to their usage:
1. Protective and control equipment
2. Cables andaccessories
3. Equipment and tools
4. Street lighting
5. Renewable energy
Owned Brands / Imported BrandsProducts in General Usage in Electricity Stream
A
DB C E
DB E
DB C E
E
Note: Electricity generation & plant Transmission lines Substation Distribution lines Low voltage lines A B C D E
GUNKUL, PIGMAN, Topweld, ALCAD, GE, SEECO and Thermoweld
GUNKUL, PIGMAN, GK
ZIMLUG,ZIMTAP and TYCO
IZUMI, DILO and Sensor LINK
GUNKUL and GK
Strictly Private & Confidential
14
Financial Support from SCB for Growth of Myanmar Business
Meeting between SCB and Myanmar Ministry of MOPE2 arranged by GUNKUL
Gunkul Engineering PCLwill receive 50 Million USDL/C from SCB to expandbusiness in Myanmar
Strictly Private & Confidential
15
Renewable Energy Business
Strictly Private & Confidential
16
Government and Wind, Solar Energy
Strictly Private & Confidential
17
Power Producer Business
Power Producer BusinessRenewable Energy Business
Strictly Private & Confidential
18
GPG Solar Power BusinessPPA 30.9 Mw
Strictly Private & Confidential
19
for growth and cash flow
Schedule for COD of Solar Power Projects (MW)
.9
.9
.0
.0
Dec Sep 1 May Jul Aug
Project I Project I Project II Project III Project IV Project V
COD4-1-2011
COD8-09-2011
Strictly Private & Confidential
20
Summary of Power Purchasing Agreement of Gunkul Powergen
Project I Project II Project III Project IV Project V
Capacity 3.0 MW 4.4 MW 8.0 MW 4.5 MW 8.0 MW 3.0 MW
Location Petchaboon Pichit Nakorn Nayok Pathum Thani
PPASigning Date 28 June 2010 16 July 2010
Expected COD Date Dec 2010 September 2011 By May 2012 By July 2012 By August 2012
Investment THB 340 mn ~ THB 110 mn per MW
Technology
Selling price ~ THB 3.0 per kWh
Adder THB 8.0 per kWh for 10 years since start of COD
BOI Tax Exemption Year 1st - 8st : 100%, 9th 13th : 50%
Strictly Private & Confidential
21
Inspection Quality 3 MW Chondan, Petchaboon : 11 March 2011
Strictly Private & Confidential
22
0.00
5,000,000.00
10,000,000.00
15,000,000.00
20,000,000.00
25,000,000.00
Electricity 3 MW (at Plant meter)
3 MW Solar Power Plant
Diff +1.67 MB(5.%)
Accumulated Value= 33.67 MB
Accumulated Value (Std)=32.00MB
54- 54Out Put Kw (h)
54 54 54 5454 54 54
Strictly Private & Confidential
23
Power Producer BusinessRenewable Energy Business
Construction Progress Chondan Phase II 30%
Sub.4(1MW)
Sub.6(1MW)
Sub.7(1MW)
COD: August 2011Module: Suntech (c-Si)Inverter: Schneider ElectricFinancial Support: KTBInvestment: 460 MTHB
Strictly Private & Confidential
24
Power Producer BusinessRenewable Energy Business
PV modules and
StructureArray boxes Inverters Transformers
and Cables MV boardSelling point
and Civil Work
Technology and Scope of Work
Strictly Private & Confidential
25
Power Producer BusinessProject progress
COMPANY LOCATION CAPACITY FORCAST TO COD REMARK
GPG Petchaboon 3.0MW 4/1/2011 -
GPG Petchaboon 4.0 MW 8/9/2011 -
GPG Wichianbury 8.0 MW May ,2011 Approved a loan from the bank (SCB) on August 30, 2011.
GPG Nakorn Nayok 8.0 MW August ,2011
Strictly Private & Confidential
26
Power Producer BusinessProject progress
COMPANY LOCATION CAPACITY FORCAST TO COD REMARK
GPS 6.5 MW 1/11/2011
GPS 6.5 MW 1/11/2011
GPS 6.5 MW 11/11/2011
GPS 6.5 MW 4/01/2012
Strictly Private & Confidential
27
.. (4.5MWp)
:
Strictly Private & Confidential
28
:
2 (4.5MWp)
2 (4.5MWp)2 (4.5MWp)
2 (4.5MWp)
.. (4.5MWp)
Strictly Private & Confidential
29
:
2 (4.5MWp)
2 (4.5MWp)2 (4.5MWp)
2 (4.5MWp)
.. (4.5MWp)
Strictly Private & Confidential
30
GPS Solar Power BusinessPPA 26.0 Mw
Strictly Private & Confidential
31
Project I Project II Project III Project IV
Capacity 6.5 MW 6.5 MW 6.5 MW 6.5 MW
Location Tasang, NokhonSawan
TaKeed, Nokhon Sawan
Dongkorn,Chainat
Klongluang,Pratumtani
SCOD Nov 1, 2011 Nov 1, 2011 Nov 11, 2011 Jan 4, 2012
Selling price ~ 3 THB/kWh
Adder THB 8.0 per kWh for 10 years since start of COD
BOI Tax Exemption: Year 1st - 8st : 100%, 9th 13th : 50%
Import tax: 0%
Technology C-Si and Central Inverter
GPS Summary of Power Purchasing Agreement of Grand Slam Project
Strictly Private & Confidential
32
be a new source for growth and cash flow
Schedule for COD of Solar Power Projects (MW)
Project I Project I Project II Project III
26
6.5
Tasang, Nokhon Sawan
TaKeed, Nokhon Sawan
Dongkorn,Chainat
Klongluang, Pratumtani
6.56.5
13.06.5
19.5
6.5
26 MW Solar Power Project is on the
process of seeking strategic partner
COD1-11-2011
COD1-11-2011
COD11-11-2011
COD04-01-2012November 2011
Strictly Private & Confidential
33
26 MW Solar Power Plant
PV modules and
StructureArray boxes Inverters Transformers
and Cables MV boardSelling point
and Civil Work
Technology and Scope of Work
Strictly Private & Confidential
34
for growth and cash flowSchedule for COD of Solar Power Projects (MW)
56.9
.0
Dec Jul 1 May Jul Aug 1
40
45
50
55
60
Sep 2011
4.43.0
7.4
26
33.48.0
41.44.5
45.98.0
3.0
Project I Project I Project II Project III Project IV Project V Project VI
Power Producer BusinessRenewable Energy Business
Strictly Private & Confidential
35
Power Producer BusinessRenewable Energy Business
Plant Layout for 26 MW GPS (4x6.5MW)
TakeedTasang
Dongkon Klong 4
Strictly Private & Confidential
36
:
. . (6.5MWp)
Strictly Private & Confidential
37
:
1250 & 625KVAR 1250 & 625KVAR
. . (6.5MWp)
Strictly Private & Confidential
38:
. . (6.5MWp)
Strictly Private & Confidential
39
:
MW1, 2, 3
MW1, 2, 3 MW1, 2, 3
MW1, 2, 3
. . (6.5MWp)
Strictly Private & Confidential
40
. . (6.5MWp)
:
Strictly Private & Confidential
41:
e-flex array box
22 KV
. . (6.5MWp)
Strictly Private & Confidential
42
:
. . (6.5MWp)
Strictly Private & Confidential
43
. . (6.5MWp)
:
Strictly Private & Confidential
44
:
22 KV 22 KV
. . (6.5MWp)
Strictly Private & Confidential
45:
array box
. . (6.5MWp)
Strictly Private & Confidential
46
EPC Opportunity
Strictly Private & Confidential
47
EPC Opportunity
Opportunity from being a One Stop Service of Solar EPC Contractor
Renewable Energy Business
Signed PPA COD Scheduled
(MW)
PPA of 700 MW scheduled to expire in the upcoming yearsMarket Value around 70 Billion Baht
Total PV solar PPA application of 1,417.35 MW With 700 MW of PPA signed
VSPP PPA Application Status
Source: EPPO, as of 31 December 2010
Approved waiting to sign 70 MW
PPA Signed
700 MW
COD 26.29 MW
120120
132.8
29
83.9
241.4
2010andbefore
2014201320122011
Strictly Private & Confidential
48
Opportunity from being a One Stop Service of Solar EPC Contractor
Experiences of Solar Power PlantTotal Solution for CustomerPrice competitiveOperation and Maintenance
EPC OpportunityRenewable Energy Business
Strictly Private & Confidential
49
8 MW solar power projectProject Owner: Solartar (Yanhee, Ratchburi Holding)Project Location: SupanburiScope: EPC Contract Value: 752 MTHB
Project ScheduleSubmit date: Oct. 22, 2010Finish clarification: Feb. 25, 2011LOI: April 01, 2011Construction period: Apr.- Oct. 2011
Opportunity from being a One Stop Service of Solar EPC Contractor
Participating more than 6,500 MTHB
EPC OpportunityRenewable Energy Business
Strictly Private & Confidential
50
Power Producer BusinessRenewable Energy Business
Future Road Map
2008-2010 2011 Onwards
Start up Growing and expand Business
Take over GPS for 26 MW
Won 8 MW Solar Power Plant for scope EPC
In house Supporting StructureManufacturer
Finish construction of Solar Project for GPG and GPS with total 56.9 MWFinish construction of the first Wind Farm 6 MWBecome the number one leader of Solar Plant EPC contractorFinish the First Solar power plant outside Thailand
EstablishGPG Start to do power producerbusiness
2011 :
To be a power producer Total solution for Renewable Energy Business
Supply and Installation Wind Turbine 2 x 1.25 MW. for EGAT
2008:
Construction of 3 MW solar power plant
2010 :
2012 :
Solar
Wind
Hydro
Biogas
Strictly Private & Confidential
51
2.Gunkul Performance for period 30/06/2011
Strictly Private & Confidential
52
103 108
149 171
303
773
0
100
200
300
400
500
600
700
800
900
1000
Q2/2010 Q2/2011
Government Private Foreign Solar
2011 Revenue Breakdown
revenue
Revenue Breakdown by Type of Customer
443719
451 448
108
391
285
249 240
171
704 362
164
600
773
28
0100200300400500600700800900
1000110012001300140015001600
Q2/2011Government Private Foreign Solar
Revenue Breakdown (Q2/2010 and Q2/2011)
1,538
1,366
864
1,2881,080
555
1,080THB (MN)THB (MN)
28
30 110
Net Profit Net Profit
Strictly Private & Confidential
53
Revenue from Trading and Manufacturing
1158
831
406
987 980
380
535458
302
100
19.624.1
25.5
28.14
28.46
0
5
10
15
20
25
30
0
200
400
600
800
1000
1200
1400
Q2/2011
Rev.f rom Trading Rev.f rom Manu. Gross Margin(%)-RHS
Revenue vs. Overall Gross Margin Net Profit vs. Net Profit Margin
188
123
54
123110.186.7
8.9
6.2
9.5510.18
0
2
4
6
8
10
12
0
20
40
60
80
100
120
140
160
180
200
Q2/2011
THB(MM)
Net Profit Net Profit Margin (%)
THB (MN) %
Strictly Private & Confidential
54
Our Financial Flexibility
Low D/E provides flexibility in doing business
368
75 74 153 147
121
276140
43117
117
4159
66131
69
0
200
400
600
800
1000
1200
1400
1600
1800
Q2/2011
AP ST-trade related liabilites LT-int.bearing Other liabilities
D/E Ratio
0
0.5
1
1.5
2
2.5
Q2/2011
2.4
0.7 0.70.58
1.42
GUNKUL
9.2
THB (MM)
Strictly Private & Confidential
55
Growing up Balance Sheets
Balance Sheets
Unit : M.THB
Current Asset
NonCurrentAsset
CurrentLiabilities
Non Current Liabilities
quity
As of Dec 31,2010 As of Jun 30,2011
754.48
1,035.23651.46
6.04
1,132.21
Total Asset 1,789.71
1,743.72
1,172.97
1,692.52
19.90
1,204.26
Total Asset 2,916.69
Strictly Private & Confidential
56
Financial Ratio
Financial Ratio Analysis
RatioConsolidated Separate Financial
Statements
Dec 31,10 Jun.30,11 Dec 31,10 Jun.30,11
Current Ratio 1.59 0.69 1.99 0.79
Quick Ratio 1.06 0.92 1.57 0.64
Account Receivable Turnover 3.25 3.38 3.29 3.45
Inventory Turnover 2.69 2.11 5.64 4.71
Fixed Asset Turnover 2.55 2.30 64.34 84.55
Total Asset Turnover 0.72 0.74 0.87 0.91
Cash Flow LiabilitiesTurnover 32.97% 22.01% 49.67% 4.55%
Debt Management Ratio 0.37 0.59 0.29 0.52
Gross Margin 28.45% 26.03% 21.33% 21.43%
Net Profit Margin 9.56% 11.66% 6.37% 14.12%
Return on Asset 6.88% 7.56% 5.55% 9.98%
Return on Equity 10.88% 18.30% 7.86% 21.00%
Profitability Ratios
Asset Management Ratios
Liquidity Ratios
Strictly Private & Confidential
57
3.Gunkul Backlog & Sales Forecast 2011
Strictly Private & Confidential
58
Backlog as of as at 30-08-2011
Revenue of THB 1,652 m. is secured for 2011 (exclude private Sales)
THB (MN)
In general revenue from Government from the past 5 years had been recorded around Baht 450 mn.
439
752
150
Strictly Private & Confidential
59
Sales Growth - 2011
Forecast
EPC/ SOLAR
GPG GPS >50%
Foreign Special Project
Privatecontractor
GovernMent
Total
3 MW(4
Jan,11)
4.5 MW(1 Sep,11)
26 MW(15 Oct,11)
Year 2010
-Revenue - - - - 600 94 146 448 1,288
-Profit Margin - - - - 22.94% 28.85% 50.66% 26.83%
Year 2011
Forecast 752 MTHB
55MTHB
15MTHB
25MTHB
Growth80%
Growth80%
Growth80%
Growth10%
Growth100%
Actual - Q1&Q2 /2011
- 28 - - 773 171 108 1,080
(THB : MN)Renewable Energy Business Conventional Business
Strictly Private & Confidential
60
1. Special Project 2011
Banglang Hydropower Project
Project Owner: EGATScope: EPSContract price: 517 M THBTender open on July 20, 2010Submit date: Nov. 17, 2010Finish final clarificationSigning Contract: September 15, 2011
Sale value for 2011Advanced payment: 10 % of contract price Q4/54
Strictly Private & Confidential
61
2. Wind Turbine Project 2012
Wind Turbine Generation Project Stage IIProject Owner: EGATProject Location: LamtaklongWind Turbine: 12 x 1.5 MWBudget: 872.180 MTHB (1,700 MTHB)
Project ScheduleEstimate submit: Quarter 4/2554Estimate sign contract: Quarter 3/2554Delivery: Quarter 2/2555Installation and finish: Quarter 3/2555
Sale value for 2011Advanced payment: 10 % of contract price Q4/54
Strictly Private & Confidential
62
2. Solar Project Sales
3 +5 MW Burirum Solar Project
Project Owner: Project Location: BurirumScope: EPC Partner: Solar Frontier, Schneider ElectricCOD: Jul 31, 12
Present statusAward Contract: September, 2011
Project Information
Strictly Private & Confidential
63
3. Solar Project Sales
8 MW Solar Project
Project Owner: Project Location: LobburiScope: EPC Partner: Solar Frontier, Schneider ElectricCOD: April , 12
Present statusSubmit bids: August 19, 11Price is higher than competitors
Next stepFind out win solution
Project Information
Strictly Private & Confidential
64
Q & A
Top Related